EUR/USD finds good support near 1.2400

• Spot stays in red around 1.2420.
• Decent support emerged around the 1.2400 handle.
• US ISM non-manufacturing came in stronger.

After dropping to fresh lows in the 1.2400 neighbourhood, EUR/USD seems to have found some dip-buyers and is now looking to regain the 1.2420 area.

EUR/USD offered on stronger USD

The continuation of the bid fashion surrounding the buck has forced the pair to recede towards the 1.2400 key support, where it seems to have found some fresh buy-orders.

Spot accelerated the downside after the US ISM non-manufacturing surprised investors to the upside in January, climbing to 59.9 and adding to last week’s positive momentum following the publication of the US ISM manufacturing, the ADP report and non-farm payrolls.

The pair moved lower in tandem with a rebound in yields of the key US 10-year note, advancing to the 2.86% area after briefly testing lows in the sub-2.83% zone earlier in the session.

Ahead in the session, President M.Draghi is due to speak at the European Parliament Plenary in Strasbourg (France).

EUR/USD levels to watch

At the moment, the pair is losing 0.26% at 1.2424 and a breakdown of 1.2398 (low Feb.5) would target 1.2336 (low Jan.30) en route to 1.2269 (21-day sma). On the upside, the next hurdle aligns at 1.2475 (high Feb.5) seconded by 1.2522 (high Feb.2) and finally 1.2537 (2018 high Jan.25).